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August 2003
Inflated claim not always fraud

The Supreme Court of Appeal in the matter of Schoeman v Constantia Insurance Company, has issued an important dictum, which clarified the law with regards to fraudulent insurance claims, notes the South African...

August 2003
Growth through partnerships

Hollard reinforced its position as a strong niche operator with the acquisition of Fedsure’s short-term operation, and it now has a product range as wide as any of its more traditional competitors.

...

August 2003
Necessity or nightmare?

Having recently come across several instances where insurance hasn’t quite worked the way the aircraft owner wanted I thought it would be appropriate to reissue an article I wrote in the antediluvian days of 1994 and...

August 2003
Cautious approach

STANLIB says it increasingly sees value in local equities, but is suggesting investors consider a phased approach rather than rush headlong in pursuit of profits.

Says Paul Hansen, Director, Retail...

August 2003
Economic filip

If nervous investors needed any more reason to hold on to their equities, then the reduction in prime rate of 1½ % in June should have clinched their loyalty.

Many were hoping for a one percent cut, which...

August 2003
Multi-manager funds

Sanlam has recently added several new products to its Stratus Savings and Investments range: the Multi-Manager Equity Fund, Multi-Manager Absolute Return Fund, Nur Equity Fund, Bond Fund and three Offshore Money...

August 2003
New measures

The Association of Collective Investments (ACI) is introducing new measures to safeguard unit trust investors’ capital. Di Turpin executive vice chairperson said the new regulations will strengthen investment security...

August 2003
Fees poser

South African savers and retirement fund members need to face up to the realities of a ‘single-digit return universe’ and apply a new yardstick when assessing performance. This would be the net return after all costs...

August 2003
Do nothing

‘Quarteritis’ is a dangerous phenomenon that can cost retail investors tens of thousands of rands every time they get infected.

Explaining this strange term STANLIB says it has been coined within the...

August 2003
Collective power

The Association of Unit Trusts has recently notified its change of name to the Association of Collective Investments (ACI), in line with the new act.

Says chief executive Colin Woodin, this reflects the...

August 2003
In the danger zone

Investors and financial advisers beware! The ‘cycle of market emotions’ is close to the danger zone – a psychological trough in which the temptation to bale out of equities seems irresistible to retail investors. This...

August 2003
Not plain sailing

Net premiums after reinsurance were up 21,6% for the first quarter this year. According to unaudited figures from the Financial Services Board, general short-term insurers collected R4 994m in net premiums, up from R4...

August 2003
A holistic approach

To gain a comprehensive understanding of a client’s financial requirements the following factors must be taken into account: risk propensity, short-term money requirements, long-term financial goals, investment time...

August 2003
Balancing risk

Many investors have become disillusioned with the performance of their traditional investment options. They have also become more aware of the risks attached to equity and currency investments, and are looking for...

August 2003
Matching cover

South Africa’s beleaguered healthcare consumers now have access to a medical scheme that allows them to match their cover both to their health risk and their financial circumstances.

The new medical...

August 2003
Not all bad

The recently announced reduction in interest rates, and the prospects of further decreases before the end of the year is perhaps not good news for everyone.

Borrowers are, of course, happy, as their debts...

August 2003
A myriad of ideas

Increased regulation in our industry has meant that financial advisers will have to focus their attention on longer-term relationships with their clients, based on proper estate and financial planning advice rather...

August 2003
Go ahead, it's legal

Section 37(2) of the Long-term Insurance Act, read together with section 3(2)(a), sets out the legal requirements for the substitution of certain compulsory annuity policies.

The Financial Services Board...

August 2003
Sooner the better

A rethink about retirement planning is essential following the huge social shifts and changes taking place in the financial markets. Salary earners need to re-assess their strategy, while the financial services...

August 2003
Strategic move

Steffen Gilbert (41), previously chief executive at Munich Reinsurance South Africa has been appointed as Santam Limited’s new chief executive with effect from 14th July 2003. This follows Dr Johan van Zyl’s...

August 2003
Good idea

Auto & General became the first short term insurance company to offer a cash back bonus to clients who sign up through brokers and other financial intermediaries when it introduced its new product 23rd April this...

August 2003
Multi choice

Sanlam Employee Benefits recently launched two new smoothed bonus funds in its multi-manager investment series, and these are intended to provide ‘stable long-term investment returns for institutional investors.’...

August 2003
Getting global

South African companies are sending veritable small armies of engineers, construction people, mining men and so on to the far flung corners of the planet as local companies globalise their operations. Problem is,...

August 2003
FAIS develops

The FAIS  Advisory Committee has almost completed its task of advising on the Fit and Proper requirements, according to the SA Insurance Association (SAIA), expected to have been finalised by the 27th May....

August 2003
Diagnosing problems

The price of imported technology is one of the major cost drivers that have forced medical aid scheme premiums to rise by nearly twice the rate of inflation in recent years, according to Medscheme CEO Andre Meyer. “...

August 2003
Keeping track

Many intermediaries are entering into agreements to provide their businesses and practices with compliance solutions as required by the Financial Advisory and Intermediary Services Act 2001 (FAIS).

Notes...

August 2003
Once in a lifetime

PSG Investment Services fully supports the Minister of Finance’s initiative allowing South African investors with ‘grey’ money offshore to legitimise their funds. In order to protect investors wishing to come clean...

August 2003
Reasons to be honest

The offshore amnesty to South Africans with ‘Grey Money’ commences on 1st June 2003 and ends on 30th November 2003, and the law allows financial planners to discuss all matters relating to such amnesty with anyone...

August 2003
Table talk

If one qualifies for the tax and exchange control amnesty, accept it without hesitation, says Professor Matthew Lester of Rhodes University.

He was speaking at the 2003 Financial Planning Convention (held...

August 2003
Safety trap

Accountants, financial advisors and insurance brokers who have an ongoing relationships with potential amnesty applicants are cautioned not to fall into the ‘safety-trap’ created by the temporary exemption under the...

August 2003
Tax amnesty

According to Mark Lapedus, head of product development at Investment Solutions, clients should not sell or switch their offshore holdings as a knee-jerk reaction to the tax amnesty, without giving the matter serious...

August 2003
Speed critical

Two people are in police custody following a vehicle recovery yesterday by Matrix Vehicle Tracking.

The vehicle, a Toyota Hi-Ace minibus, was hijacked at gunpoint in Wentworth. Following the activation of...

August 2003
SARS tries again

SARS v Pinestone Properties 2001- appeal heard in the Natal High Court

A building had been damaged by fire and had to be extensively repaired, in the course of which certain serious defects had to be corrected in addition to the fire damage...

August 2003
Custom service

Old Mutual introduced its internal ombudsman in April this year and, within two months says it has ‘finalised 95 queries from the public’ with 21 being adjudicated in favour of the customer.

Internal...

August 2003
Call for a code

The SA Insurance Association (SAIA) says it has held a meeting with the Banking Council to discuss current practices regarding the deregistration of motor vehicles. Both sides have agreed that they need to co-operate...

August 2003
Client reminder

The Ombudsman for Long-term Insurance recently expressed concern over the level of client care of several companies in the industry.

His concerns – noted in his annual report - were backed up by reaction...

August 2003
Go awayyyyyyy!!!

I can’t stand these idiots who phone at 18.30 when we are about to start supper, and launch into a discussion as to why our driveway needs tarmac, or why we have been awarded a special price to have our roof painted....

August 2003
Policy problem

In light of the position taken by government, drivers that have not converted will now be in contravention of their motor insurance policy, advises the SA Insurance Association (SAIA). “Not only must a person be...

August 2003
Risk of loss

Deneys Reitz on insurance case law: Lynco Plant Hire & Sales BK v Univem Versekeringsmakelaars BK 2002

The plaintiff, a close corporation with three members, carried the risk of loss in terms of a...

August 2003
Clamping up

The second phase of the Financial Intelligence Centre Act (FICA) was implemented the end of June 2003, and is one more step in the fight against money laundering in South Africa, estimated in the billions of rands a...

August 2003
Care line from M&F

Mutual & Federal says it has launched an ‘HIV Prevention Initiative’, available to all Allsure policyholders from 1st May 2003. The service is free of charge.

“It’s of paramount importance that...

August 2003
Reducing costs

The abolition of stamp duty payable on group life cover in this year’s budget has altered certain dynamics at work in this price-sensitive industry worth over R4 billion a year.

Richard Treagus, Old...

August 2003
UK to follow

Following 150 000 vehicle inspections conducted over the last three years Malachi Vehicle Enterprises of SA found that 36% ‘had obvious body and/or glass damage at the time of going on risk’. Random checks...

August 2003
Old Mutual mislays 10%

Over R1 billion in shares in Old Mutual remain unclaimed by absent policyholders. The company is still trying to find some 309 000 out of a total 3,3 million shareholders who have not yet claimed their stake in the...

August 2003
Field of opportunity

First Link Insurance Brokers and Sentra Beleggings have sold their shareholding in Agri Risk Specialists (ARS), the underwriting agency specialising in insurance on growing crops, on a cash basis to Santam....

August 2003
Alternate exchange

The JSE now offers an alternative exchange for small and medium businesses, called AltX. The Department of Trade and Industry (the DTI) has supported the initiative.

“All companies start small and we are...

August 2003
Greaty clarity

South Africa’s unit trust industry is adopting a new measurement standard aimed at providing investors with the most accurate disclosure of fund performance.

Di Turpin executive vice-chairperson of the...

August 2003
Sage move

Sage Life announced that, as a result of the positive impact of recent developments, its board of directors have determined it no longer necessary to levy surrender penalties, originally introduced on 17th December...

August 2003
FAIS to learn

In terms of the 2001 Financial Advisory and Intermediary Services Act (FAIS) the licensing of financial advisors is expected to begin within the next few months.

The Act attempts to achieve a balance...